Inflation data out today

The markets were fairly subdued yesterday with the majors trading in a very tight range. However there was a strong ‘risk off’ element (leading to a weaker euro and pound) as news broke of the bomb explosion in Boston. News began to filter through that 2 explosions had occurred 4 hours into the Boston Marathon with a 3rd reported at a Library. So far there are reports of 3 deaths and over 140 people injured in what is now looking like a terrorist attack, though this is yet to be confirmed. Markets reacted negatively and with 2 high profile events taking place in the UK ( Baroness Thatcher’s funeral and the world’s largest marathon here in London) markets may remain wary over the coming week.

Data wise, if yesterday was quiet today is quite the opposite. We have a raft of inflation data out from both the UK and Europe along with the ZEW business sentiment from Germany. This afternoon we have data from the U.S including housing and industrial releases and ECB president Draghi is due to speak at 2pm which could spread some light on the current Cyprus situation along with and potential changes to ECB banking policies in the near future.

Expect a volatile day dependent on how the data releases are received by the markets and if the bombing in Boston does turn out to be terrorist related expect a day of ‘risk off’. To make sure you are aware of all market movements do keep in touch with your account manager here at Currency Index.